StudentShare solutions
Triangle menu

Trade Impasse at WTO - Essay Example

Not dowloaded yet

Extract of sample
Trade Impasse at WTO

This impasse represented a marked shift in the global trade scenario in the sense that it not only impinged upon the world community to reconsider the cherished concepts like free trade and protectionism, but also extended a unique perspective pertaining to these concepts, harbored exclusively by the developing nations. This dilemma was further accentuated by the fact that while India and China managed to forge a unique alliance in the name of food security, the developed world stood divided against itself, with the European and American negotiators resorting to obstinacy and mutual recriminations (Bradsher 1).
The thing to be kept in mind is that Economics is an applied discipline and free trade and protection are merely the tools exploited by the individual nations in particular and the world community in general to solicit their respective objectives. A thorough economic analysis of this situation definitely needs to take into cognizance the political compulsions of the respective states. In the given scenario, China has to defend its primarily rural agrarian sector, its industrial growth being exclusively an urban phenomenon. The US on the other side is averse to enervating its influential farm lobby in the election year (Bradsher 1). The Manmohan Singh led coalition government in India is running its last lap with immanent elections gaping ahead and does not afford to disturb its vote rich farming sector. Hence a credible way out calls for a win win compromise, which is based on sound economic principles and the pressing needs of the nations involved.
The economic indicators that deserve immediate attention are that both the India and China are at present the victims of inflationary trends, with the inflation in India crossing the double digit mark in the last quarter of 2008. China and India are resorting to protection going by the logic that this will encourage their farming sector, without considerably raising the prices of the agricultural products in their domestic markets. By doing so, they have failed to understand the intricacies of their respective economies that are now irretrievably bound to the global economy.
The fact is that an imposition of high tariffs on the American agricultural products is eventually bound to increase the prices of the farm produce in both India and China. Such improvised prohibition on the entrance of the foreign agricultural products in the domestic markets of India and China will certainly increase the prices of the similar commodities in these countries. Especially in India, where the farmers do not enjoy a direct and unobstructed access to the markets and the trade in the agricultural commodities is mainly governed by the commission agents. Once these vested interests come to know that the domestic markets are exclusively left at their mercy, they will certainly not hesitate in artificially elevating the prices of the farm produce by resorting to hoarding and black marketing. The farming sector in China and India is not so resilient at present that an exorbitant tariff on the American agricultural products would directly translate into an enhanced internal competition, resulting in the lowering of domestic prices.
One peculiar thing about the food products is that there exists a thin line between the finished product and the raw ...Show more

Summary

The July, 2008 World Trade Organization negotiations at Geneva, where the scene of a stand off between the developed world, represented primarily by the US and the Europe, and the developing world, which encompassed the Asian tigers like China and India (Bradsher 1)…
Author : kilbackalize
Trade Impasse at WTO essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Trade Impasse at WTO"
with a personal 20% discount.
Grab the best paper

Related Essays

Is WTO a Necessasity for Global Trade
In conclusion, this paper agrees that the WTO is a necessity to the modern day global trade, which has become too competitive in different aspects. This competitiveness have led to some compromises in business and trade operations and thus the need for a neutral, independent, international body to regulate the trade operations without fear and favourism.
13 pages (3250 words) Essay
World Trade Organisation (WTO)
Indeed, WTO should be called an extension of GATT because the latter organisation focused on minimising tariffs on goods only to enhance trade. Nevertheless, WTO focuses on eradicating barriers (such as quotas, protectionist policies, duties etc.) on trade of goods and services.
1 pages (250 words) Essay
How the World Trade Organization (WTO) Impacts Intellectual Property Rights
Economics affects individuals living in the United States by influencing their standards of living. On the other hand, it affects the firms by determining the scope of their jurisdiction; economics influences whether a firm will engage in domestic, international or both trades (Kroll, 1999).
8 pages (2000 words) Essay
International Business and Trade. WTO
Their origins may be traced as far back as early mercantilist theory, which is of the effect that the wealth of a country is safeguarded by increasing the net of export less import, which basically means to out-produce the foreign countries, a situation which led to the development of protectionist policies by most governments (Ivanyna, 2006).
6 pages (1500 words) Essay
Incremental Advances in WTO Negotiations
Trade ministers meeting in Hong Kong have accepted an agreement that incrementally advances long-stalled World Trade Organization (WTO) negotiations but still leaves most political and economic decisions pending for 2006. Ministers approved December 18 a final declaration aimed at giving direction for concluding the conference, formally called the Doha Development Agenda, by the end of 2006.
5 pages (1250 words) Essay
Business law - chinese trade and investment law
Its membership would help bring about a steady development of the world economy and contribute to the establishment of a just and reasonable international economic new order (Chen 2000). On the political and diplomatic side China had always wanted to be recognized by the large multilateral institutions, the WTO being prominent on the list of those to which it is not a member (Barshefsky 1999).
12 pages (3000 words) Essay
WTO and its role in establishing global trade
The word liberal has many meanings but in this regard it means that the WTO establishes ideal conditions for global trade to take place. There are so many vital functions of the WTO and this paper will throw light upon the importance of WTO and its role in establishing global trade.
3 pages (750 words) Essay
In recent years WTO negotiations encountered a number of difficulties. How we can identify and asses the economic benefits that might occur as a result of a successful conclusion to the recent trade negotiations at the WTO Use theories to explain the rat
The negotiations, known as the Doha Development Round are characterised by two opposing factions. The developing countries including emerging
20 pages (5000 words) Essay
Analyse the potential benefits of the Doha trade round to the global economy; what caused the current impasse and what are the dangers now that multilateral trade agreements have stalled
ired negotiations on a set of different issues, including both the so-called Singapore issues (investment, trade and competition, government procurement, trade and the environment, labor market linkages to trade, improvements on trade facilitation) and basic market issues
10 pages (2500 words) Essay
Should the United States pursue free-trade agreement
Despite the World Trade Organization and prospects of global trade liberalization, the United States should continue to negotiate free-trade agreements as the best approach to achieving its trade
3 pages (750 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation